SHELTER COVE HARBOUR COMPANY ARCHITECTURAL REVIEW BOARD

POLICIES, PROCEDURES, AND GUIDELINES FOR COMMERCIAL, MULTI-FAMILY AND RECREATIONAL PROPERTIES

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POLICIES, PROCEDURES AND GUIDELINES FOR THE DEVELOPMENT OF COMMERCIAL, MULTI-FAMILY AND RECREATIONAL PROPERTIES

FORWARD Covenants Recorded among the Beaufort County land records is a Declaration of Rights, Restrictions and Conditions which constitute covenants running with certain lands in Shelter Cove Harbour. These Covenants, hereinafter to which they will be referred, run with the deeds to that land, regardless of from whom and/or from what company it was purchased. These Covenants were established, among other things, to assure and preserve certain high standards of aesthetics and materials, to provide all property owners with ample opportunity to make the best use of their property in a manner in keeping with rights and values of adjoining properties, and to create certain procedures to enable the community to permanently control the quality of its neighborhoods. The Covenants, to which Shelter Cove Harbour properties are subject, specifically provide for an Architectural Review Board and the implementation of architectural guidelines. While the Covenants identify and outline certain architectural conditions and restrictions, they also address other topics. In addition to the Covenants, Shelter Cove Harbour Company (hereinafter referred to as SCHC) has established architectural policies, procedures and guidelines (hereinafter referred to as PPGs) that are explained throughout this document. This document is not intended to be on the same level of authority as the Covenants and, unlike the Covenants, may be amended or modified at the sole discretion of SCHC.

Architectural Review Architectural review of specifications for new construction, additions, re-constructions, alterations or changes to structures and landscaping, demolitions and decisions thereof are solely determined by the Shelter Cove Harbour Architectural Review Board (hereinafter referred to as ARB). “No temporary or permanent Structure may be commenced or erected upon the Property nor may any application for building permit for any Structure be made nor any significant landscaping be done, nor any addition to any existing building or alteration or change to the exterior thereof, be made until the proposed building plans, specifications, materials and exterior finish, plot plans, landscape plan and construction schedule have been submitted to and approved by the Company following consideration by the Architectural Review Board as provided by Section 5-7.” (SCHC Covenants, Article II, Sec. 2-1)

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Aesthetic Considerations Property owners as well as their architects, land planners, construction contractor, landscape contractor and other professionals involved in the project (hereinafter referred to as the “Project Team”) are to use original designs and varied materials but maintain the overall theme of Shelter Cove Harbour. It is important to realize that the overall impact of a design involves considerations of taste and judgment which cannot be reduced to measurable standards such as square footage, setbacks, roof pitch or similar items. A design which meets all of the statistical criteria may be unacceptable for purely aesthetic reasons, and the ARB has the authority to make subjective judgments of this nature. The authority of decisions by architectural review boards, which decisions can be based purely upon aesthetic considerations, has been recognized and upheld by the South Carolina Supreme Court.

Adherence to Guidelines Adherence to the policies, procedures and guidelines in this document is essential to achieving a combination of high quality design, overall diversity and individual expression within the context of a cohesive and harmonious community design setting which is accomplished in a manner that is compatible with and complements the natural surroundings, climate and other environmental factors indigenous to this area. Although most local architects, land planners, designers and contractors will be familiar with the information contained herein, property owners are urged to verify that the Project Team member(s) they select are, in fact, thoroughly knowledgeable as to the content of this document as well as with the requirements of the Town of Hilton Head Island and other regulatory agencies having jurisdiction over the Project.

Architectural Review Board The Shelter Cove Harbour Covenants has created a three to five member Architectural Review Board (“ARB”) for the purpose of establishing and enforcing architectural, siting, landscaping, vegetation and building controls in conformity with these Covenants and pertinent law. The ARB meets on an “as needed” basis to review all plans for construction, provide recommendations, discuss the general appearance of the community and appropriate actions to improve its aesthetics, and work with owners, architects, land planners, builders, and landscape professionals to assure that high standards are being maintained. (SCHC Covenants, Article V, Section 5-7)

Document Conflicts In any instance where the information contained herein conflicts with the Covenants, the Covenants shall control. In any instance where the information contained herein conflicts with the ARB permit application, this document shall control. Additionally, the decisions of the ARB are not and will not be bound or restricted by any precedent relating to structures, landscape, signs, fences, etc. on existing commercial, multi-family or recreational properties within Shelter Cove Harbour.

Written Notification Applicants will be notified in writing of all ARB Decisions. Oral representations of ARB decisions shall be non-binding on the ARB.

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Oral Representation No person has been authorized to give any information or make any representation not contained in this document and, if given or made, such information or representation must not be relied upon as having been authorized by the ARB

No Responsibility/Liability The ARB assumes no responsibility or liability as to the adherence to building codes and other requirements by the Town of Hilton Head Island (hereinafter referred to as the “Town”) or other regulatory agencies (hereinafter referred to as “Agencies”) having jurisdiction over the Project, as that remains the sole responsibility of the Owner, along with their Project Team. By approval of such plans, the ARB assumes no responsibility or liability for structural design or damage to other property during the approved construction. Further, it should be noted that if some portion of the approved plans is, due to inadvertent oversight by the ARB, in violation of the SCHC Covenants, such approval will not later prevent the ARB from seeking enforcement of the Covenants. The authority of the ARB is derived from the Covenants. No approval of plans, locations or specifications, and no publication or architectural standards bulletins by the ARB shall ever be construed as representing or implying that such plans, locations, specifications or standards will, if followed, result in a properly designed Project or that such standards comply with pertinent law. Such approvals shall in no event be construed as representing or guaranteeing that any Project will be built in a good workmanlike manner. No implied warranties of good workmanship, design, habitability, quality, fitness for purpose or merchantability shall arise as a result of approvals made by the ARB.

Reservation The ARB reserves the right to require adherence to the policies, procedures and guidelines contained in this document and in the Covenants that, in its sole judgment, have not been followed.

Revisions These policies, procedures and guidelines are subject to periodic revision and modification. It is the responsibility of the Owner and their team member(s) to verify with the ARB that they have the most current version of the PPG’s and related documents.

Information / Inquiries / Contact Information All inquiries are to be directed to the Shelter Cove Harbour Company. Shelter Cove Harbour Architectural Review Board Policies, Procedures and Guidelines and other related documents as well as Shelter Cove Harbour Company Covenants may be obtained from the Shelter Cove Harbour Company.

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POLICIES 1. Responsible Party. The Property Owner is the ultimate responsible party. The Property Owner and the Project Team are to sign the ARB application and can be held responsible and accountable. Property Owners and their Project Team member(s) are to adhere to the SCHC Covenants and ARB PPG’s and ensure adherence by all sub-contractors, suppliers and employees. 2. Plan Adherence. Adherence to plans, as they are submitted and approved, is required. Changes to approved plans must be submitted on a Change Request Form. Revised plans clearly showing changes must be submitted and approved prior to site changes being made. NO EXCEPTIONS! Failure to adhere to this policy may result in a fine and/or retention of all or part of the compliance deposit. 3. Renovation Compliance. Any renovation requiring ARB approval also subjects the Property to an overall ARB inspection to ensure the Property meets current ARB standards. If deficiencies are found, issuance of the ARB permit may be contingent upon the Owner’s agreement to bring the Property into compliance with the current ARB PPG’s. 4. Final Approval. ARB final approvals are not open ended, have an effective date after which date any approvals given are null and void and are as follows: a. New Construction. ARB final approvals are effective up to 12 months from the date of final approval. After 12 months, all approvals previously given to a project are null and void. After issuance of the clearing permit, 18 months is allowed for new construction completion (SCHC Covenants, Article II, Sec. 2-4). Landscape installation must be completed in the time period prescribed for new construction. b. Renovation. ARB final approvals are effective up to 6 months from date of approval. After six months, all approvals previously given to a project are null and void. Renovation completion time will be based on scope of work as determined by the ARB. Landscape installation must be completed in the time period prescribed for renovation. c. Other Projects. ARB final approvals for other projects involving painting/staining, re-roofing, tree removal/trimming, signage, etc. are effective for one (1) month. Work must be completed in the time period prescribed by the ARB. d. Extensions. Requests for any extension of a completion date must be received in writing by the ARB a minimum of two weeks prior to the expiration of the Permit. Extensions may be granted at the sole discretion of the ARB. 5. Permits. Permits are required for all new construction, renovations, and other exterior projects as well as for some interior projects. No work may begin until the appropriate ARB permit has been issued and posted. If the permitting process is not adhered to, a fine per occurrence will be assessed. In addition, a stop work order may be placed on the Project until all requirements have been met.

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6. Utilities. Utility (water, sewer, electrical, etc.) services at the job site must be provided prior to beginning any work that requires their use (SCHC Covenants, Article II, Sec. 2-9). Utility usage from neighboring properties is prohibited. If a violation occurs, a fine will be assessed. Prior to the construction and use of any structure on any property, proper and suitable provision shall be made for the disposal of sewage by connection with the sewer mains of Broad Creek Public Service District. No sewage shall be emptied or discharged into any body of water. 7. Start of Project. For new construction, renovation and other projects, work at the site may not begin until the ARB Administrator has met with the Contractor, the appropriate compliance deposits have been received and the applicable ARB permit has been issued. It is the Property Owner’s and/or Contractor’s responsibility to post the appropriate ARB permits in conjunction with Town and other regulatory agency permits if applicable. Posted permits must be visible from the street. 8. Work Schedule. Construction must be reasonably continuous and without interruptions. The construction site cannot be or cannot appear to be abandoned at any time. Deviations from the below are at the sole discretion of the ARB. a. Construction work is to be Monday through Friday and is to occur between 7:00AM and 7:00PM (SCHC Covenants, Article II, Sec. 2-5). b. Construction work on weekends or national holidays is normally not permitted but may be permitted at the sole discretion of the ARB. 9.

Adjacent Properties and Common Areas. The following policies are to be followed in regards to adjacent properties and common areas: a. b. c.

Materials must be stored on the Project site and not on adjacent properties. Access to the Project site by means of an adjacent property is not permitted. If it is not possible to perform construction work without using common property for access, permission to use the common area must be obtained in writing from the ARB under the direction of the SCHC. d. Permission to use privately owned property must be obtained in writing from the owner and a copy provided to the ARB. e. After construction has been completed, any damage resulting from the construction, including damage to streets, leisure paths, etc., must be corrected. f. Any area damaged during construction must be returned to its original condition or better before the request is made for final inspection. g. After final ARB inspection, all repairs to the common area must also receive final approval from SCHC prior to the refund of any compliance deposit. 10. Site Condition. It is the responsibility of each Property Owner and Contractor to prevent the development of any unclean, unsightly or unkempt conditions of buildings or grounds on such Property during construction which shall tend to substantially decrease the beauty of the neighborhood as a whole or the specific area. The Project site is to be kept in a clean and uncluttered condition with refuse containers covered at the end of each day. The entire area is to be free of debris at the end of each day. Daily penalties may be imposed and/or the job may be shut down if these standards are not met. No burning or dumping is permitted in Shelter Cove Harbour. Refuse containers are to be emptied when full.

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11. Site Access. The Property Owner or Contractor shall provide a temporary driveway entrance or a designated access path with appropriate mulch or stone connecting the property to the street at one point, so as not to interfere with drainage along the street. Street pavement must be kept clean during construction. Costs of repairs and maintenance to off-site areas damaged in the construction process are the responsibility of the Property Owner. 12. Site Rules. No noxious, offensive or illegal activity shall be carried on upon the Property, nor shall anything be done therein which may be or may become an annoyance or nuisance thru visual blight to any nearby property nor shall levels of sound or noise be created significantly disturbing nearby areas. The following are not permitted on the site, including but not limited to: loud music; foul language or unacceptable behavior of any kind; fishing, hunting or the like; and pets (except those of the Property Owner). Only persons associated with the Project are permitted on the Project site. Noise or unacceptable behavior complaints will require the ARB or Security to shut down the job site and a penalty will be imposed. 13. Temporary Structure(s). No structure(s) of a temporary character shall be placed upon the Property at any time, provided, however, that this prohibition shall not apply to shelters used by the Contractor during the construction of any permanent structure, it being clearly understood that these latter temporary shelters may not, at any time, be used as residence or for any commercial uses or permitted to remain on the lot after completion of construction. Before or after construction is completed, no fence, trailer, tent, barn, tree house or other similar outbuilding or structure shall be placed on the Property at any time, either, temporarily or permanently, without written approval of the ARB. 14. Tree Protection Standards and Regulations. Tree protection standards and regulations are established in order to: lessen air pollution; to promote clean air quality by increasing dust filtration; to reduce noise, heat and glare; to prevent soil erosion; to improve surface drainage and minimize flooding; to ensure that noise, glare and other distractions of movement in one area do not adversely affect activity within other adjacent areas; to emphasize the importance of trees as a visual buffer; to beautify and enhance improved and undeveloped land; to maintain the ambiance of the community; to ensure that tree removal does not reduce values; and to minimize the cost of construction and maintenance of drainage systems necessitated by the increased flow and diversion of surface waters. a. Encourage protection/replanting. The intent is to encourage the protection and replanting of trees consistent with the economic and healthful enjoyment of private property, and to treat all sites equitably for the purpose of protecting and replanting trees and maintaining adequate tree coverage. b. No removal. No tree measuring six (6) inches or more in diameter at a point four (4) feet above ground level may be removed without written approval of the ARB. The objective of this provision is to insure that all Property has an adequate tree border on all sides of such Property, and, further, to insure that no trees are removed from any Property except in those specific instances where failure to remove a tree or trees would substantially impair or prohibit the use of the Property for the purpose approved by the ARB.

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c. In Violation. An Owner of the Property shall be deemed in violation of this provision in each instance of the removal prescribed herein above, whether such removal be deliberate or the result of negligence on the part of such owner or his agent or agents. d. No modification/addition. No vegetation may be modified nor may any fill or structure be added without the approval of the ARB or which, in the opinion of the ARB, could cause a destruction of water courses or result in unsightly or dangerous conditions on adjoining properties. 15. Easements. SCHC has reserved unto itself, its successors and assigns a perpetual, alienable and releasable utility easement and right in, on, over and under the Property to erect, maintain, operate and use the poles, wires, cables, switches, computers, receptacles, satellite transmission earth stations, conduits, directional and informational signs, drainage ways, sewers, irrigation lines, wells, antennas, receivers, garbage collection facilities, pumping stations, tanks, water mains and other suitable equipment for the conveyance, transmission or use of video, voice facsimile and data communications, electricity, gas, sewer, water, drainage or other public conveniences, utilities and communication facilities on, in or over those portions of such property as may be reasonably required for utility line purposes. (Covenants, Article IV, Sec. 4-4). SCHC specifically retains a twelve (12) foot easement along the road edge, marsh edge, parking lot edge or lagoon edge of all Properties including common areas for bridges, pathways and the like (Covenants, Article IV, Sec. 4-5). SCHC may cut drainways for surface water whenever and wherever such action may appear to SCHC to be necessary in order to maintain reasonable standards of health, safety and appearance. These easements and rights expressly include the right to cut any trees, bushes or shrubbery, make any gradings of the soil, or to take any other similar action reasonably necessary to provide economical and safe utility installation, and to maintain reasonable standards of health, safety and appearance. It further reserves the right to locate wells, pumping stations and tanks within any Property designated for such use on the applicable plat of a subdivision to locate the same upon on any lot with the permission of the owner of the Property. Such rights may be exercised by any licensee of SCHC but this reservation shall not be considered an obligation of SCHC to provide or maintain any such utility or service. Any and all construction within the easement is forbidden, without the prior written approval of the ARB and the holder of the easement. 16. Subdivisions. SCHC has expressly reserved to itself, its successors or assigns the right to re-plat any two (2) or more lots and take such other steps as are reasonably necessary to make such re-platted lot suitable and fit for use for its originally intended purpose to include, but not limited to, the relocation of easements, walkways, bike tracts and rights of way to conform to the new boundaries of said replatted lots. No lot in a recorded subdivision plat may be reduced in size to be smaller than the smallest parcel in such subdivision. Notwithstanding the above, however, any lot may be reduced in size to a minimum of one acre. (Covenants, Article IV, Sec. 4-11).

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PROCEDURES Review and approval by the ARB is required prior to Owner and/or their representative(s) seeking review, approval and permits of the Town or other regulatory agency(s) having jurisdiction over the Project. NO EXCEPTIONS. 1. Submissions. All ARB required applications and related documents, completed in their entirety and signed by all applicable parties, must be submitted to the ARB. Upon receipt, an ARB meeting will be scheduled for review. All items submitted to the ARB become the property of the ARB. Any submission that does not include all required documents and signatures will not be reviewed. 2. Fees and Deposits. Fees and Deposits are generally determined on a per Project basis at the sole discretion of the ARB. The following fees and deposits are payable to Shelter Cove Harbour ARB and are required as part of the architectural review process: a. Administrative Fee. A non-refundable administrative fee is due at time of submission which covers four submissions (concept, preliminary, final and one additional). Additional reviews, if any, may require an additional fee(s). This fee also provides for administration of the Project by a SCHC representative(s) from point of submission through Project completion and final inspection. b. Compliance Deposit. A compliance deposit is due after approval of the plans and prior to the issuance of any ARB permits. The amount of the compliance deposit is determined on a case by case basis taking into consideration the scope of the work to be completed and can be determined as a percentage of the Project cost; or by calculation of a dollar amount per heated square foot; or by a set amount. Compliance funds are deposited in an interest-bearing account with interest accruing to the benefit of the SCHC. All funds will be retained by the SCHC, pending satisfactory completion of a project in accordance with the plans approved by the ARB and in accordance with the Covenants. 1) Refundable. The compliance deposit is refundable, except for any uncollected fines assessed against the Property during construction or fines assessed after final inspection. A refund of the compliance deposit will not be issued until a satisfactory ARB final inspection has been completed and all requirements met as well as final inspections and approvals by the Town and other regulatory agencies have been obtained on the Project and copies provided to the ARB. 2) Withhold. A portion of the compliance deposit may be withheld until it has been determined that the required drainage plan is functioning as projected. 3) Non-refundable. Request for final inspection must be made within 30 days of completion of entire Project including the landscape portion. If no landscape requirement for Project, request must be made within 30 days after completion of Project. If after 60 days an inspection has not been requested, such compliance deposits will be non-refundable and retained by SCHC.

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3. Plans/Documents. Plans (generally ¼” or 1/8” scale) submitted are to be professionally prepared by a Engineer, Architect, Land Planner and/or Landscape Architect. A detailed narrative of the proposed work must be included with the plans submitted. For minor projects, clear, legible drawings prepared by the owner or contractor may be sufficient. A drainage plan is required whenever any soil disturbance is involved. The ARB Administrator, Chairperson or members shall determine if the drawings are sufficiently clear and detailed. Two sets of plans are required at time of submission. 4. Renderings / Scale Model. A three dimensional scale model (generally 1/8 inch per square foot) is required for new construction and major renovations. Renderings required, if any, are to also reflect the trees, hardscape and landscape. 5. Attendance: The applicant or their designated representative may request to attend an ARB meeting. The date and time will be determined by the ARB Administrator or ARB Chairperson. A written decision will be provided subsequent to the meeting. Verbal determinations shall not be rendered and, if rendered, not binding. 6. Surveys / Certificates. All surveys and certificates are to have the seal of a South Carolina licensed land surveyor, no exceptions. As-built surveys must be current and reflect the property “as built” at the time of submission. Tree and topographic surveys must be current and reflect the property “as is” at the time of submission. In addition to the surveys required at submission, following are items required to be submitted to the ARB after clearing and during the construction process: a. Tree Survey. After clearing and prior to start of construction, an updated survey verifying only those trees noted on the original survey and approved for removal have been removed. b. Foundation Survey. Prior to pouring concrete and commencing further foundation work, a survey verifying the foundation is per the plans and specs.. c. Elevation Certificate. At completion of the first finished floor subfloor and prior to framing at that level, a certificate verifying the first floor elevation. d. Building and Story Height Certificate. Certificates verifying the height of each story and building height are required at completion of each story’s framing and prior to installation of roofing materials. Per the Covenants, there is a height limitation (89 ft. AMSL) of five (5) stories above the minimum dwelling floor height (14 ft. AMSL) as established by flood insurance regulations or other pertinent laws of which a “story” is not to exceed fifteen (15) feet from floor to ceiling. e. As-Built Survey. A survey verifying that the project is per the plans and specs as approved by the ARB is required at completion of the project. 7. Review. Following are the types of submissions for the architectural review process for new construction and renovations. Some minor renovation and other projects (painting/staining, re-roofing, tree removal, signage, etc.) will not be required to utilize all three (3) submission processes. a. Concept. For concept review/approval, schematic renderings must be submitted to the ARB. These renderings should show all sides of the Project with large trees and landscape indicated. The submission must include all required documents. .

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b. Preliminary. For preliminary review/approval, all documents cited on the application form must be submitted to the ARB. In addition, a three dimensional scale model (generally 1/8” per sq. ft.) of the Project may be required. The purpose of such models is to aid the ARB’s understanding of more complex or elaborate design proposals. Preliminary approval does not constitute approval for lot clearing or construction activity of any kind. c. Final. For final review/approval, all documents specified on the application form must be submitted to the ARB. Final approval does not constitute permission to commence construction on a building site including lot clearing and tree removal or tree trimming. Final approval to begin construction and/or renovation is contingent upon ARB required inspections and the completion of the preconstruction meeting with the ARB Administrator. d. Change Requests. Change request forms must be submitted for any change to the approved plans. Revised plans clearly showing changes must be submitted and approved prior to site changes being made. NO EXCEPTIONS. Failure to adhere to this policy may result in a fine, job site shut down and or retention of all or part of the compliance deposit. e. Notification. Before considering for approval the permit application for all new construction and most major additions or alterations, the ARB may first formally notify (and invite comment from) adjacent and nearby owners of the intended construction. When such action is considered useful and appropriate, the ARB will notify the potentially affected property owners by letter. The property owners so notified will then have up to ten (10) days to preview the application at the ARB office and, if desired, to file written comments or objections regarding the proposed construction. The applicant then will be allowed up to 10 days to respond to the ARB regarding such comments or objections. After receipt of the applicant’s response, if any, the ARB will initiate detailed review of the application at its next scheduled Board meeting. f. Non-Approval. Refusal of approval of plans, locations or specifications may be based by the ARB and the holder of the easement upon any reasonable ground which is consistent with the objectives of the Covenants and the ARB PPG’s, including but not limited to aesthetic considerations, the harmony and scale, the impact of the bulk, coverage, function or plans on neighboring properties, the view of the structure or property from SCHC roads, the placement of parking spaces, and the desirability of preserving significant trees or other unique vegetation. 8. Regulatory Agency Documents. Following final approval of the project and prior to the issuance of any ARB permits, the ARB office must receive a copy of all applicable forms and permits of the regulatory agencies having jurisdiction over the Project including but not be limited to: Town of Hilton Head Island Building Permit; DHEC or OCRM documents; Broad Creek PSD Water/Sewer documents, etc. as well as fully executed ARB required documents. If any conflicts on guidelines, rules, and regulations between the ARB, the Town of Hilton Head and other regulatory agencies having jurisdiction over the Project, the strongest governs unless in violation of the SCHC Covenants. 9. Construction Schedule. Project is required.

A construction schedule indicating the timeline for the

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10. Permits. Permits issued by the ARB as well as the Town of Hilton Head Island and other applicable regulatory agencies having jurisdiction over the Project must be posted by the Contractor in charge of the Project. Permits are to be posted in clear view on the Project site and in a format and location agreed upon by the ARB. Final approval does not constitute permission to commence any work at the site until all proper permits (ARB as well as the Town and other applicable regulatory agencies) are issued and posted. a. Construction. All site clearing, foundation work and vertical construction require separate permits and applicable work cannot proceed until each permit is issued. b. Exterior Renovations. All exterior renovations (signage, painting, re-roofing, window/door replacement, wood repair, landscape, etc.) require an ARB permit. c. Interior Renovations. Interior renovations require an ARB permit if it affects the exterior appearance in any way or if a portable toilet or dumpster will be utilized. 11. Inspections Required. The Contractor is responsible for notifying the ARB office for all required inspections which are as follows: a. Pre-clearing Inspection. If necessary, the Property must be brush hogged prior to stake out. This will be determined by the ARB. Trees designated for removal, as shown on the final approved site plan, are to be marked with red tape. All other tape is to be removed. All property corners must be staked. All property lines must be marked with string. The contractor will be responsible for stringing the proposed perimeters of the buildings including decks, swimming pool, driveways, etc. Prior to final approval a site visit must be completed by the ARB. b. Post Clearing Inspection. A post clearing inspection will be made to ensure no additional trees were removed nor excessive trimming done during clearing. Any damage to trees noted or unapproved tree removal or trimming will be subject to fines and/or retention of all or part of the compliance deposit. Construction cannot begin until this inspection has been completed and approved by the ARB. c. Foundation Inspection. After clearing and prior to pouring concrete and commencing further work for the foundation, a foundation survey is required to be submitted to and approved by the ARB prior to the issuance of the ARB Building Permit. d. Building and Story Height Inspection. At completion of framing and prior to the installation of roofing materials, a building and story height certificate(s) verifying the height of each story and the building height is required. e. Interim Inspections. Throughout the construction period, the site may be inspected by ARB members and/or representative(s). f. Final Inspection. A final inspection will be conducted when the ARB office has been furnished with, but not limited to, the following: 1) A signed, written request by the Contractor for a final inspection. 2) A copy of the As-Built Survey, Certificate of Completion and Certificate of Occupancy as well as final inspection and “approval” documents of the Town of Hilton Head and other regulatory agencies involved in the Project. 3) If a certified drainage plan was required by the ARB for this project, the Owner and Contractor must verify, in writing, that the certified drainage plan has been installed and is functioning per the approved plan. 4) A digitized copy of the final/approved plans 5) Photographs (digitized and 8”x10” prints) of all sides of the completed Project

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GUIDELINES 1. Elements Considered. Elements that will be considered by the ARB before plans or specifications are approved include, but are not limited to, the following: the ratio of hard surface to natural tree or landscaped surface; location of utility lines; the ratio of parking spaces to building capacity; the adequacy of recreational facilities when viewed against the number of persons such facilities are projected to serve; an acceptable plan to provide for the capture and disposition of any surface water runoff on the property; adequacy of proposed restaurant facilities, convention facilities, meeting areas, or auditoriums when viewed against the number of persons such facilities are projected to serve and the desirability of each venture being reasonably self-sufficient; and whether any of the proposed improvements to be constructed on the Property exceed the maximum allowable height for such improvements. 2. Design/Construction Philosophy. The architectural design and construction philosophy of the ARB is that buildings should be unobtrusive in form and color In order to complement their natural setting. One of the purposes of architectural review is to ensure that structures, improvements, materials and colors are visually harmonious with the overall appearance of Shelter Cove Harbour, surrounding development, natural land forms and existing vegetation. Structures shall demonstrate the general principles of good design including but not limited to those dealing with form, mass, scale, height, texture and color. Specific consideration shall be given to compatibility with adjacent structures where such structures are substantially in compliance with this guideline. 3. Visually Harmonious. No alterations in the exterior appearance of any building or structure shall be made without approval by the ARB. Proposed development shall be located and configured in a visually harmonious manner with the terrain and vegetation of the parcel and surrounding parcels. Structures shall impede, as little as reasonably practical, scenic views from the main road or from existing structures and the natural environment. The architectural design of structures and their material and colors shall be visually harmonious with the overall appearance, history and cultural heritage of Shelter Cove Harbour and demonstrate the Community’s character, that is, structures which are designed to be unobtrusive and set into natural land forms and existing vegetation. 4. Preserve and Enhance. In order to preserve and enhance the economic value of the Property and to prevent congestion and crowding which would be detrimental to the value of adjacent areas, generally no more than fifty percent (50%) of the total acreage in any Property may be utilized for enclosed and/or covered buildings and similar structures or facilities. The unenclosed portion of any Property shall be maintained in an attractive manner to include landscaping, walkways and automobile parking areas. Larger percentages may be reviewed on a case by case basis and at the sole discretion of the ARB and SCHC. 5. Underground Utilities. All underground utility locations are to be flagged prior to any clearing, grading or digging. NO EXCEPTIONS. Call 1-888-721-7877 to make arrangements.

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6. Tree Removal/Trimming. No trees of any kind above 6 inches in diameter at a point 4 feet above ground level may be removed without approval of the ARB and posting of an ARB permit. Trees to be removed must be designated on the site plan with the reason for removal (e.g., dead, diseased, top missing, within building envelope, etc.). All trees designated for removal must be banded with red tape. An arborist’s inspection and written report may be required for consideration of the removal of any tree in question. a. Removal. To be removed, trees should be dead, diseased, dying or leaning precariously towards a structure. When a tree is removed, the stump must be ground. In some cases, the ARB may, but is not required to, approve a tree to be cut level with the soil surface and not ground. b. Trimming. Trimming may not exceed 30 percent of the existing leaf surface of the tree. Minimal trimming for view and breeze is at the discretion of the ARB and must be approved prior to any work being started. c. Permit. An ARB Permit is required for removal of trees above 6 inches in diameter at a point 4 feet above ground level. An ARB fee and deposit are required for removal and/or trimming. When the trees have been marked and the application document and fee received by the ARB, an ARB representative will visit the site to consider the request. If approved by the ARB, approval and a permit must then be obtained from the Town. Upon receipt of a copy of the Town permit, an ARB permit will be issued and both permits must be posted by the Contractor. If the request is not approved, the Owner will be notified. Work may not commence until both a Town and ARB permit are issued and posted. 7. Tree Protection. All trees on the construction site must be protected against damage by orange mesh attached to 2 x 4 frame barricades, as close as possible to the tree’s drip line, or a minimum of 5 feet from the tree trunk. Root compaction is to be avoided within the drip line of trees through the use of wood barricades and mulch. Under no circumstance are building materials, equipment, vehicular traffic or parked vehicles to come into contact with trees on the site. Caution is to be exercised when making grade changes around trees. Tree wells are encouraged. When clearing around trees, avoid the use of heavy root raking equipment, which may damage or destroy root systems, resulting in tree failure. If, in the judgment of the ARB, a tree is damaged or destroyed due to carelessness or avoidable activities on the part of the Owner or Contractors, the ARB will require suitable replacement. A fine may be issued or a portion of the compliance deposit may be retained as a penalty. 8. Tree Replacement. The ARB may require replacement of any tree approved for removal as well as damaged or removed without approval. The type and size of the replacement tree will be at the discretion of the ARB. When tree mitigation is required, the ARB adheres to the Town of Hilton Head Island tree mitigation requirements. 9. Designated Areas. Areas for construction vehicles must be provided on the site and indicated on the site plan, along with the placement of portable toilet(s) and refuse container(s) as well as storage of building materials.

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10. Waterfront Clearing. Permission for any vegetation clearing along the waterfront (Broad Creek, lagoons, etc.), within the 20 foot buffer area, must be approved by the Town of Hilton Head and the ARB prior to requesting an ARB permit. The ARB has the right to request additional plantings in addition to the requirements of the Town. Wax myrtles are sometimes abundant along the water and need to be preserved relative to ecological factors and erosion control. Landscape plans for properties along the waterfront must include native vegetation in the 20 foot buffer. These plans are to be submitted to and reviewed by the ARB prior to submission to the Town. The Town will stamp the plans to indicate that the plans must be reviewed and given final approval by the ARB. 11. Waterfront Restricted Zone. In order to preserve the natural appearance and scenic beauty and to minimize erosion, a construction and clearing restricted zone is established on all properties or parcels adjoining the waterfront. That portion located within 20 feet of the average high water mark shall be preserved substantially in its present natural state except for moderate clearing for view and breeze. Construction and major clearing of trees and underbrush in this area must be specifically approved by the Town of Hilton Head, in conjunction with the OCRM/DHEC requirements, prior to ARB approval. 12. Waterfront Setback Requirements. No residential, retail, lodging or similar building or structure may be erected within fifteen (15) feet of the water’s edge (lagoon, retention pond, mean high water mark of Broad Creek, harbour bulkhead, etc.) on any property. Structures in the nature of pools, decks, hot tubs, pathways, cook-out and entertainment structures, open-air bar and food facilities, recreational support structures, picnic storage areas and restrooms may be built within such setback line upon approval by the ARB. Variances may be approved at the sole discretion of SCHC. (Covenants, Article II, Sec. 2-13) 13. Demolition. When a building or structure is demolished, any variance to setbacks previously given to the property is null and void. If outbuildings, hardscape (driveways, parking areas, etc.) are present, they must be included in the demolition. If a pool is present, in good condition and meets the current setbacks, it may remain. If a pool remains after demolition, it must be secured to ensure it does not become a safety hazard. If the pool does not meet current setbacks, it must be demolished. After demolition, the property must be maintained in such a way that it does not detract from the community. It must be kept free of debris, weeds and mulched to prevent soil erosion. Saplings are allowed to take root and grow. If the demolition site is on the waterfront and grass/sod is in the 20 foot buffer, it must be removed and the area mulched to prevent erosion, no exceptions. A post and rope barricade (“fence”) designed per ARB specifications and approved by the ARB is required to be installed by the Owner to prevent illegal parking on the site. In the event that a project will be built immediately on the Property, this barricade will not be required. Prior to a permit for demolition being granted, the Owner will be required to sign a maintenance acknowledgement form. 14. First Floor Elevation. Minimum finished first floor elevation shall be established by the Federal Emergency Management Agency.

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15. Underbrush Removal and Brushhogging. An undeveloped property may be left in a natural state unless it becomes unsightly or unsafe (fallen trees, limbs and underbrush) as determined by the ARB. Underbrush removal is considered an alteration of vegetation characteristics of a property. No underbrush removal is permitted until an ARB permit is issued. An administrative fee, as well as a compliance deposit, is required. Except as provided in the covenants, trees (including wax myrtles, palmettos, pines, oaks, etc.) of any size are not to be removed under any circumstances unless they are diseased, dying or dead. Diseased, dying or dead trees, if any, are to be flagged with tape and inspected/approved by the ARB prior to removal. A permit for the removal of the approved trees will be issued. Underbrush removal must first be reviewed by the ARB and, if approved, then by the Town. An ARB Permit will not be issued until a copy of the Town Permit is received. In addition, removal of underbrush within 20 feet water side is not permitted. All debris/refuse from underbrush removal is to be removed from the Property within 24 hours after completion. Underbrush removal is to be scheduled so that no debris/refuse is left on the Property over any weekend/holiday. No burning or dumping of any kind is permitted. . No disruption of the earth or removal of native vegetation along the waterfront is permitted. 16. Fill/Grading/Drainage. Careful planning is needed to ensure that the building project’s site requirements are compatible with the existing site conditions thereby preventing excessive disruption of the native site. Unsightly grading, indiscriminate earth moving, clearing of the property, or removal of the trees and vegetation, which could cause disruption of natural watercourses, scar natural landforms, or destroy native plant groupings are prohibited. Fill/grading is to be designed in a manner to prevent standing water and to assure there will be no run off to adjoining properties. All water pumped from the ground to facilitate any aspect of the construction process must be contained on the property at all times. Under no circumstances may this water be discharged into Broad Creek or other bodies of water either directly or through drains on the property or on the roads. Failure to adhere to this policy will carry fines/penalties determined on a case by case basis. Drainage, swales, culverts, retention ponds, or other appropriate provisions must be installed if the construction will adversely affect the drainage of the natural watershed or cause runoff to adjacent properties. A certified drainage plan is required for all projects which plan must be coordinated with the Town’s Storm Water Management Program. 17. Improvements in Easements. Improvements by an Owner to property within an easement may be subject to disruption by the activities of SCHC and/or the utility companies (Broad Creek Public Service District, Palmetto Electric, etc.). The replacement and/or repair of such improvements after SCHC disruption are not required and are at the discretion of SCHC. 18. Setbacks. The Land Management Ordinance of the Town of Hilton Head Island sets the minimum setback requirements for construction. The ARB may require greater setbacks from time to time. Structures should be setback from all property lines in order to permit drainage, landscaping, and screening and to avoid interference with the rights and comforts of the owners of adjoining properties. A single structure should be near the center of the lot about equidistant from all property lines. Variations from the center may be dictated by the usage of the surrounding land for deliveries, parking, trees to be retained, or by the character of the adjoining property (i.e. waterway, road, etc.).

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19. Fences/Walls. Fences and walls are permitted. Chain link, lattice or similar seethrough material is not acceptable. The use of tall plant materials or earthen berms with plant materials to screen and buffer them from view is encouraged. A site plan showing exact location, complete construction details (including intended materials) and a landscape plan are required. Retaining walls required to stabilize earth will be considered on a case-by-case basis 20. Service Yards. A service yard(s) is required to contain and screen heat pumps, air conditioning equipment, electric or gas meters, cable or telephone boxes, irrigation boxes, pool equipment, propane tanks, garbage receptacles, etc. Underground propane tanks may be located outside the service yard, but must be a minimum of 15 feet from the property line. Service yards should be designed to complement the main structure(s). Lattice or similar see-through material is not acceptable. Overlapping siding, stucco, brick or louvers are acceptable. Service yards must meet setback requirements of the main structure and be a minimum of one (1) foot above the tallest item in it. Landscaping (evergreen) around the perimeter of the service yard is required. During a renovation, if HVAC, pool equipment, utility boxes, or showers are found to be exposed, the ARB has the right to request they be enclosed by a service yard as part of the renovation. Entrances to service yards should be screened from view. Service yard gates must remain closed when not in use. 21. Utility/Service Equipment. Equipment such as heating and air conditioning may be installed on top of buildings provided that it is screened form horizontal view and incorporated within the roof surround design. Chimneys, tanks and supports, parapet walls, bulkheads, and structures used solely to enclose stairways, tanks, elevator machinery or shafts, or ventilation or air conditioning apparatus may be included in determining an acceptable height limitation. 22. Refuse Disposal. Each Property owner shall provide sanitary receptacles for garbage in a screened area not generally visible from the road, or provide underground garbage receptacles or similar facility in accordance with reasonable standards established by the ARB and such facilities shall be kept in a clean and sanitary condition. Gates in screening fences must remain closed when not in use. Materials used for screening must be compatible with those used for the primary structure(s) on the property. 23. Roofs. Pitched roofs or the appearance of pitched roofs with a minimum slope of 5/12 are strongly encouraged. Long monotonous façade designs including, but not limited to, those characterized by unrelieved repetition of shape or form or by unbroken extension of line shall be avoided. Shingles, metal standing seam, tile or other non-flammable roof materials appropriate to Shelter Cove Harbour may be used. When replacing the roof on an existing structure(s), submission to and approval by the ARB is required prior to installation even if the roofing color and materials are to remain the same. Roof vents are to be painted to blend with the roof. An application must be submitted along with an administrative fee and actual samples of the intended materials. Upon approval and payment of a compliance deposit an ARB Permit will be issued. A building permit must be obtained from the Town of Hilton Head and a copy furnished to the ARB prior to issuance of the ARB permit. All required permits must be posted on site before re-roofing can begin.

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24. Materials/Color Selections. Stucco, tabby, natural wood siding, brick or other materials with similar texture and appearance are appropriate. Reflective surfaces are not acceptable. Exterior colors of paint, stains, and other finishes or materials should be nature-blending with generally no more than three colors per building. “Chips” of all color selections, including picture of and color selection for front entry door(s), need to be labeled and submitted for approval on white hard board approximately 8” x 11”. All stucco color selections are to also be submitted on stucco as only a “chip” is not acceptable. Larger samples, when required, are to be submitted separately, in addition to the color board. These larger samples of the exterior color and finish of all materials proposed for the building(s) are to be submitted on actual samples of materials proposed for use. These samples are most important to both the owner and the ARB in evaluating the eventual appearance of the structure as color chips often vary greatly from actual applications. For all new construction or major renovation projects, a separate color selection display board is to be placed on the building site in full view of the street. Color samples should be proportionate to the use and displayed on the finish to be used. All vertical construction is to be painted including hand or deck rails, posts, stair risers, louvers, lattice, columns, service yards, fences etc. Vents and all visible utility boxes are to be painted to blend with the area in which they are located. 25. Landscape Plan. The landscape plan (generally ¼” or 1/8” in scale) for the proposed Project shall provide visually harmonious and compatible settings for structures on the same lot and on adjoining or nearby lots and shall blend with the surrounding natural landscape. Natural appearing landscape forms are strongly encouraged; formal plans and the appearance of straight hedges are discouraged. Landscaping shall be required between buildings and sidewalks, parking lots and driveways. The scale of the proposed landscaping shall be in proportion to the building and sites. All properties must be landscaped in a manner appropriate to their use, and setting. Landscape plans must be submitted with the original application for approval and shall include: a. Planting plan showing location, quantity, and type of proposed plantings. b. Plant schedule showing all materials to be used for landscaping, botanical name, common name, quantity, size at installation. c. All horizontal landscape construction such as walls, drives, decks, terraces, etc. are to be drawn on the plan and labeled according to material and finish. d. All vertical landscape construction such as walls, fences, raised decks, shelters, light standards, signs, flagpoles, trellises, seats, mailboxes, etc., are to be drawn and labeled to indicate its size, height, materials and general appearance. e. If landscaping is to irrigated, show approximate extent of coverage and outline performance specification. Major projects require an irrigation plan. f. Landscape lighting if used on site, showing location, wattage, typical fixture design, type of bulb and quantity, and illumination patterns. 26. Lighting. All lighting is to be installed so as not to disturb neighbors, invade or illuminate adjoining properties or roadways or interfere with the vision of motorists on nearby streets. Site lighting is to be of low-intensity from a concealed light source fixture and is to be per the specifications of SCHC. Architectural lighting is to be recessed under roof overhangs or generated from concealed light source, low level light fixtures. Lighting generally is to be downlighting and not light the sky. A light illumination plan is required.

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27. Buffer Areas. The function of buffer areas is to provide visual and noise barriers between adjacent land uses or between a land use and a public road which block out both visual nuisances, such as glare from lights, and shield the source of noise from view, thereby reducing its perceived impacts. Additionally, buffers may serve as a protective or safety barrier, by blocking physical passage. Heavily planted buffers may restrict the movement of dirt or dust and assimilate air carried contaminants. The design of buffer areas shall utilize three features: (a) distance, (b) plant material and (c) structural elements such as fences, privacy walls, berms, etc. and may take into account easements. The following development activity may occur in the required street buffer: Roadway and/or driveway access to the portion of the site not in the street buffer provided that it is approximately perpendicular to right-of-way. Water, sanitary sewer, electrical, telephone, natural gas, cable or other service lines provided they are approximately parallel to the roads right-of-way, an equal amount of buffer may be required to substitute for the area of vegetation removal. Permission for easement and right-of-way disturbance and clearings for such services shall be more favorably considered when such activity is consolidated with vehicular access routes. Pathways (for bikes/pedestrians) designed to provide continuous connection along the roads and other pathways throughout the community. Lighting fixtures. Signage. Clear sight distances at the permitted entrances and exits to any development as needed to provide for reasonable traffic safety. Storm drainage provided that it does not impair the basic integrity of the required buffer. 28. Pool and Surrounding Deck. Pool/surrounding deck setback is a minimum of 20 feet from side and 30 feet from rear property lines or edge of water. a. Site Plan. A site plan showing existing trees proposed pool, deck and equipment enclosure locations is required. In addition, complete construction details including waterfalls, raised spas, construction materials along with color samples, and landscape plan, are required. Siting of Pools is reviewed on a case-by-case basis. Street side pools are discouraged and generally not permitted. The proposed pool deck is to be designated on site indicating the outside edge of the pool deck on all sides. b. Landscape Plan. Landscaping should complement or enhance the existing property and provide for landscape planting beds between the structure or raised decks and pool deck to allow adequate foundation plantings to screen and soften the mass of the structure. Landscape should be designed so as to screen and buffer pools, spas, etc. from view from the road and adjoining properties. The ARB reserves the right to require complete landscape upgrade if the Property does not meet current guidelines. c. Equipment Enclosure. Pool equipment, including heaters, tools and chemicals are to be located in an equipment building. Pump motor location is to provide minimal noise disturbance to adjoining properties. Underground propane tanks may be located outside, but must be a minimum of 20 feet from the property line. Plan is to indicate how pool backwash water is to be handled. d. Screened pool enclosures. Screened enclosures are discouraged and generally not permitted unless, in the opinion of the ARB, the design of the enclosure complements and blends with the architectural style of the structure. Enclosures must meet building setback requirements. e. Spa/Waterfall. When a spa or elevated waterfall is built as part of the pool, no tile is permitted on its exterior surface. A spa or waterfall generally may not exceed eighteen (18) inches above the surrounding deck.

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29. Parking. Adequate space for off-street parking for all users on the site or on other adjacent owned areas is to be provided. Parking for employees and service and delivery vehicles is equally important. The size, type and minimum number of parking spaces required shall be established by the Town of Hilton Head Island, but such number may be increased by the ARB. The required parking space for any number of separate uses may be combined in one facility. Generally, the required space assigned to one use may not be assigned to another use; thus, the total available spaces should be the sum of required spaces for each of the individual uses. All off-street parking in conjunction with development fronting on a collector or arterial street shall be designed so that vehicles can turn around within the area and enter the street in such a manner as to completely eliminate the necessity of backing into the street. Parking areas shall be suitably landscaped to minimize noise, glare and other nuisance characteristics as well as enhance the environment and ecology of the site and surrounding area. Large parking areas are to be broken down into smaller sections, separated from other smaller sections by landscaped, or naturally vegetated dividing strips, berms and similar elements. Surfaces of parking areas which absorb water but which protect the land from erosion and wear are encouraged in lieu of fully paved surfaces. All parking area lighting is to be Salem fixtures, a maximum 20ft. in height and hooded or directed to the extent practical to shield the light source from direct view from adjacent properties. 30. Signage. The location and dimensions of wall signs is to be indicated and maintain compatibility with architectural features of the building. All signage is to be reflected on site and building elevation plans including detailed drawings of each type. 31. Mailboxes. Mailboxes should be incorporated within the building design and provide a safe and well lit environment for pick-up and delivery. 32. Antennas /Dishes. Antennas and dishes should be installed in an enclosure and on roof tops where possible as well as screened from view. Submission to the ARB is required prior to installation. 33. Awnings. Awnings may be installed on buildings with ARB approval. Awning color should be compatible with the exterior colors of the building. Complete construction design details, materials (including sample of awning material) and colors are required with all awning submissions. 34. Window Treatments. The exterior surfaces of all exterior window treatments (including hurricane protection devises) are to be compatible with and complement the exterior of the building. The exterior surfaces of all interior window treatments (blinds, shades, shutters, drapery, etc.) are to be earth-tone, subdued in color and compatible with and complement the exterior colors of the building. 35. Flagpoles and Statuary. Statuary elements and their location are reviewed on a case-by-case basis and, if approved, all plumbing and electrical fixtures associated with them are to be adequately screened from view. Flag or banner poles are also considered on a case-by-case basis and generally not permitted on the street side of a building, within 20 feet of the property line and have a maximum height of 20 ft. above natural grade.

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36. Gazebos. Gazebos are permitted, must be located within the building envelope and must be compatible with the design elements of other structures on the site. A site plan showing exact location and complete construction/elevation details as well as a landscape plan are required. 37. Sound Devices. No exterior sound devices (speaker, horn, whistle, bell, sound devices), except devices intended for use and used exclusively for safety or security purposes, shall be located, used or placed upon any part of the Property without a conditional one-year permit. (Covenants, Article II, Sec. 2-17) 38. Docks/Piers. Docks/Piers are generally not permitted except in the marina area but may be considered on a case-by case basis. A site plan showing exact location and construction/elevation detail drawings meeting criteria established by SCHC’s Engineer of Record for SCHC wharf/dock/pier structures are required. Use of marine grade materials including stainless hardware is required. Lights will be considered. Details and/or a cut sheet of the fixtures and materials are to be furnished and shown on the site plan. An ARB permit cannot be issued without record of a copy of the Town and/or OCRM/DHEC permit being on file with the ARB. Docks/Piers must, at all times, be maintained in good repair, safe, and clean/orderly in appearance. All areas above the high water mark, exclusive of pilings, must be painted or otherwise treated with preservatives and maintain such paint or preservatives in an attractive manner. 39. Bulkheads. A site plan showing exact location and construction elevation details, including materials, is required and is to be designed to follow the contour of the bank and meet the criteria established by SCHC’s Engineer of Record for SCHC bulkheads. Soil added along the bulkhead is to be covered with Town approved plantings. The ARB may require additional plant replacement. Marine grade materials including stainless hardware must be used. Lights are normally not permitted on bulkheads. Partial bulkheads are not permitted. If a property has a bulkhead, it must be maintained at all times and may be repaired or replaced but never removed. 40. Wells. No private water wells may be drilled or maintained on any property without written approval of the ARB. 41. Solar Energy. The utilization of passive solar designs as well as active mechanical solar collection devices for hot water heating and climate control of interior spaces in buildings constructed on the Property is encouraged but not required. 42. Fees, Deposits, Fines and Penalties. A Schedule of Fees, Deposits, Fines and Penalties is provided as a separate document to the PPG’s and must be signed by the Owner and Contractor prior to the issuance of any ARB Permit. 43. Appeal Process. Final decisions made by the ARB in reference to the denial for new construction or renovation projects may be appealed. Appeals for ARB decisions may be requested in writing to the ARB within thirty (30) days following written notification of the ARB’s decision. The appeal request will be forwarded to the SCHC Board for review. The decision of a majority of the Board will be final and binding on the ARB, the Owner and all other involved parties.

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SHELTER COVE HARBOUR ARCHITECTURAL REVIEW BOARD POLICIES, PROCEDURES AND GUIDELINES SCHEDULE OF FEES, DEPOSITS, FINES AND PENALTIES ADMINISTRATIVE FEES Administrative Fees are generally determined on a per Project basis at the sole discretion of the ARB, are non-refundable, and based on items such as, but not limited to, Project square footage, schedule, cost, scope of work, etc. as well as professional assistance required and other criteria. Conditioned and/or Covered. Fee is determined by the Project. The minimum fee is: 1. New construction-$5,000; 2. Renovations/additions: Major - $2,500; Minor - $1,000. Unconditioned Only. Fee is determined by the Project. The minimum fee is $1,000. Interior Renovations where ARB Permit Required. Fee is determined by the Project. The minimum fee is $250.00 Demolition. Fee is determined by the Project. The minimum fee is $500. Minor Projects. Fee determined by the Project. The minimum fee is $100.

COMPLIANCE DEPOSITS Compliance Deposits are generally determined on a per Project basis, at the sole discretion of the ARB, and based on items such as, but not limited to, Project cost and other criteria. Minimum deposits are as noted below: New Construction.

Minimum: $10,000

Renovations-Major.

Minimum: $ 5,000

Renovations-Minor.

Minimum: $ 1,000

Interior Renovations. Minimum: $ 1,000 Demolition.

Minimum: $ 1,000

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FINES AND PENALTIES The ARB may, in its sole discretion, issue Fines and/or Penalties for violations including, but not limited, to the following which may be increased if a violation is habitual. Clearing of site (removal of any tree) or start of construction before ARB Permit issuance. Loss of initial application fee; must submit duplicate application fee as penalty prior to permit issuance. ARB may also require demolition, re-siting or rebuilding at Owner’s and/or Contractor’s expense. Tree Penalties (see section below) will apply. Failure to Post any ARB Permit. $25.00/day after 2 working days telephone notice. Violation of any Sign Rule. $25.00/day after 2 working days telephone notice. No portable toilet and/or refuse container at job site. $100.00/day after 2 working days telephone notice. All construction will be halted until on site. Failure to deposit trash in refuse container and/or to place cover over refuse container at end of day; or to prevent trash overflow. $100.00/day after 2 working days telephone notice. Continuous violations will result in project shut down. Failure to initiate continuous construction within 6 months of transmittal of the approved ARB Permit to the Applicant. Revocation of ARB approval and Permit. Failure to request or to request timely the required ARB inspection(s). All construction will be halted until required inspection is completed by the ARB. Up to total compliance deposit may be charged. Failure to submit foundation survey to the ARB prior to pouring the footings. All construction will be halted until survey is delivered to the ARB and approved. Up to total compliance deposit may be charged. Failure to submit first finished floor elevation certificate to the ARB prior to the start of framing. All construction will be halted until certificate is delivered to the ARB and approved. Up to total compliance deposit may be charged. Failure to submit building height certificate to the ARB prior to the start of roofing. All construction will be halted until certificate is delivered to the ARB and approved. Up to total compliance deposit may be charged. Building occupancy prior to issuance of Certificate of Completion/Occupancy. Up to total compliance deposit plus $100.00/day until certificate of completion is issued. Failure to complete project within eighteen (18) months (or the ARB stipulated completion time period) after transmittal of the approved ARB Permit or after expiration of approved written extensions granted by the ARB. 10% of the total Compliance Deposit each month (excluding parts of a month) up to the total deposit.

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Non-compliance with approved construction plans and specifications. Up to total compliance deposit. The ARB may also require demolition, re-siting or rebuilding at Owner’s or Contractor’s expense with a time limit for correcting the changes as prescribed by the ARB. Failure to correct the changes during the prescribed time limit will result in fines of $100.00/day until the changes are corrected according to the requirements of the ARB. At a minimum, there will be a $500 fine and the required submission of corrected architectural as-built drawings for approval within 15 days of notification by the ARB. Failure to submit the corrected drawings for approval within 15 days will result in fines of $100.00/day until the changes are corrected to the requirements of the ARB. Tree Damage Penalty. The intent of this section is to emphasize the importance of trees to be saved, maintaining the park like setting of Shelter Cove Harbour per the Covenants. All trees to be saved shall be maintained in an undamaged condition. Accidental damage due to dead trees falling, equipment breakdown, or any act on the part of the contractor and/or owner deemed by the ARB to be unavoidable would not warrant a penalty. However, the owner will be liable for consistent accidental damage to existing trees. Damage due to improper location of utility trenches or ditches will not be considered accidental. The owner will be responsible for damage on the part of the Contractor, whether by method of excavation, use of improper equipment, incompetence of any operator or failure to properly inform operators as determined by the ARB. All trees on site shall be saved except those specifically marked for removal with a red ribbon and on an ARB approved site plan/tree survey. No tree, either those marked for removal or any other tree may be removed prior to the ARB’s inspection and written approval. Trees will be rated by the ARB as to species, condition, and site importance with the following figures acting as maximum penalties and the minimum penalty amounting to no less than onehalf these figures. Tree Penalties are as follows and are the maximum per tree: Caliper at 4.5’ above grade Pines Oaks Other Hardwoods 6” – 8” $600 $2,000 $1,000 8” – 10” $750 $2,500 $1,250 10” – 14” $1,500 $5,000 $2,500 14” – 20” $2,000 $6,750 $3,500 20” and larger $2,500 $8,500(1) $4,500(2) (1) plus $500.00 per inch over 20 inches (2) plus $25.00 per inch over 20 inches Acknowledgement of Fees, Deposits, Fines and Penalties. This Schedule of Fees, Deposits, Fines and Penalties potentially applicable to the Project has been reviewed and is acknowledged by the undersigned Owner of the Property and its Contractor. All Fines and Penalties incurred may be charged against the Compliance Deposit or required to be paid in addition to it. Any balance due must be paid within seven (7) days. The ARB Certificate of Completion will not be issued until such time as the outstanding balance of Fines and Penalties Due is paid in full. Payment of Fines and Penalties shall not relieve the Owner and/or Contractor from complying with the specific terms of the SCHC Covenants and the ARB Policies, Procedures and Guidelines as well as the Permit Agreement. ACKNOWLEDGED: OWNER:

CONTRACTOR:

______________________________________ _____________________________________

____________________/_________/20______ ____________________/_______/20_______

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SHELTER COVE HARBOUR COMPANY ARCHITECTURAL REVIEW BOARD Hilton Head Island, SC 29928

APPLICATION - INITIAL The undersigned Owner of the Propertyacknowledges and agrees to the following: 1. _________________ (“Owner”) is __________________(“Property”) and __________________.

the Owner of the Property located the undersigned is the authorized agent

at for

2. All statements contained in this application have been prepared by Owner and/or its agents and are true and correct to the best of their knowledge. 3. Owner has read and acknowledges the Shelter Cove Harbour Company (“SCHC”) Covenants which run with deeds to all lands in Shelter Cove Harbour. 4. Owner has read and acknowledgesthe SCHC Architectural Review Board’s (“ARB”) Policies, Procedures and Guidelines (PPG’s) and the PPG’s Schedule of Fees, Deposits, Fines and Penalties (“Schedule”). 5. Owner acknowledges and accepts the authority of SCHC and its ARB particularly as it relates to the SCHC Covenants, PPG’s and Schedule. 6. Owner understands and acknowledges that certain Fees and Deposits per the SCHC ARB PPG’s are required to be paid by Owner to SCHC prior to the start of the architectural review process and/or start of construction. 7. Owner understands and acknowledges that the review by SCHC of Owner’s site plan for the Propertyis for conceptual purposes only and any approval by SCHC of the site plan is subject to review and approval by SCHC of all items required by SCHC to be submitted by Owner for the SCHC architectural review process including but not limited to documents, plans, renderings, drawings, scale models, samples, etc. Revisions to the site plan, if approved conceptually, can be required by SCHC based on their subsequent review of the aforementioned items. 8. Owner agrees to hold SCHC, its board members, employees, agents, engineers, contractors and other representatives harmless and defend for any loss or damage to persons or property occurring on the Property during their entry upon the Property, unless the loss or damage is the result of the sole, willful negligence of the respective parties. OWNER:

DATE:

__________________________________________ _____________________________ Name:____________________________________Cell

___________________________

Address:____________________________________Office ___________________________ ____________________________________ Home ___________________________

Email Address: ______________________________________________________________________

Description of Project: